The release of the US Consumer Price Index on Tuesday at 12:30 GMT caused a drop of the US Dollar. On the USD/JPY currency exchange rate charts the initial drop was followed up by a short recovery before the decline resumed.
By the middle of Wednesday's European trading hours, the rate had reached the 109.30 level and lost 80 base points.
Economic Calendar
On Thursday, at 12:30 GMT, the US Retail Sales and Core Retail Sales data sets are set to be released to the public.
Note that at the same time the US Unemployment Claims are scheduled to be released.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
If the pair continues to decline, technical support could be found in the weekly S2 simple pivot point at 109.18. Below the pivot point, the 109.00 mark might stop or even reverse a decline. Meanwhile, the August 16 and 17 low levels near 109.15 are capable of providing support.However, a recovery of the rate could find resistance in the weekly S1 simple pivot point at 109.57 and the 109.60 exchange rate level.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has broken free from trading near the 55 and 100-day simple moving average. From a technical perspective, the rate was squeezed in between the SMAs and the US CPI release provided the needed push for it to break out.In regards to the future, if the pair continues to decline, it would look for resistance in the zone that surrounds the 109.00 mark.
Daily chart
On Tuesday, traders on the Swiss Foreign Exchange were 68% short on USD/JPY.
On Wednesday, the sentiment had decreased to 63%, as 63% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 53% to sell on Tuesday.
On Wednesday, 73% of orders in that range were to buy the pair.